“on behalf”

I have a load of news alerts, and my NH Department of Revenue listing delivered me one this morning. I follow the NH DOR because they really take care of business for some NH residents.

A recent declaratory ruling by the New Hampshire Department of Revenue Administration has left many S corporation owners considering whether they should convert to a limited liability company in order to save money on their New Hampshire taxes.

In the spring, on behalf of an S corporation business client, we asked the DRA to rule on whether a New Hampshire S corporation can convert to an LLC without incurring additional business and real estate transfer taxes and whether distributions from the converted LLC to its New Hampshire resident owners would continue to be subject to the interest and dividends tax, as with distributions from S corporations.

The DRA’s favorable ruling presents a significant planning opportunity for any S corporation owner receiving distributions which are currently subject to the I&D tax.”

Here is the link to the rest of the article from the New Hampshire Business Review



“Limited Liability Company: A Limited Liability Company (LLC) is a combination of the corporate and partnership forms of business. In an LLC, parties control shares of the company and like corporations, and their liability for the operations of the company is determined by their level of investment. However, like partnerships, income tax is not paid at the LLC level, but rather it is “passed through” and taxed at the shareholder level. This somewhat complicated form of business entity should be discussed further with an attorney or accountant to determine if it will fit your needs.”

“S” Corporation: An “S” Corporation is similar to a corporation in that it provides its shareholders with protection from liability. However, unlike a corporation, an “S” corporation is exempt from federal income tax. Instead the taxes are paid solely by the individual shareholders.

The definitions above were lifted from the NH link below.


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